Administrators called in at £23m-turnover contractors
ADMINISTRATORS have been called in at a £23m-turnover contractors Galloway Group, with 161 jobs being made redundant.
The company operates across its joint head offices in Dewsbury and Dundee in Scotland, and it can trace its roots back to 1872 when the company began trading as tinsmiths.
It acquired E Rushworth Ltd in the 1980’s, which gave it a presence in Yorkshire. By 1992 the company had completed a factory and office buildings at the site on Eightlands Road, Dewsbury.
The company has worked on high profile jobs including The British Museum and The Millennium Dome.
The board of Galloway directors met last week, deciding that the business should be placed into administration, saying in a statement that it was a “very sad day” for a well-established company.
Administrators at EY were appointed yesterday, 1 August 2016.
The company directors said the business had been under “considerable pressure” for years, with demand in their traditional construction market weak since 2012.
Galloway said its margins had been significantly reduced, with the collapse of the oil & gas sector causing increased pressure.
Galloway’s directors said: “The Directors have worked tirelessly, and in good faith, to avoid insolvency through a number of initiatives, including cost cutting, modernising the business offering and raising finance.
“Efforts to raise finance are significantly impaired because of the high debt burden on the business from both previous borrowings and the final salary pension scheme.
“The Board would wish to acknowledge the support of many parties, both in the private and public sector, all of whom have Galloway and its’ employees interests at heart.
“We would especially wish to acknowledge the commitment, skill and hard work of the employees, many of whom have been with the business for a long time.
“We will continue to work with EY during the Administration process as may be required.”
The most recent management team completed an MBO of the business in 2008.
More to follow…
